According to New classical Economics
A)anticipated policy change will not affect output
B)unanticipated policy change will affect output
C)both a and b
D)none of these

Question

Quizplus · Accepted Answer

New classical economics posits that anticipated policy changes are already factored into economic agents' decisions and thus do not affect output, while unanticipated policy changes can affect output because they catch economic agents by surprise, leading to adjustments in their behavior.

According to New Classical Economics